Marauder Resources East Coast Inc.
TSX VENTURE : MES

Marauder Resources East Coast Inc.

August 30, 2005 18:45 ET

Marauder Resources East Coast Inc.: News Release

CALGARY, ALBERTA--(CCNMatthews - Aug. 30, 2005) - Marauder Resources East Coast Inc. (TSX VENTURE:MES) ("Marauder") is pleased to report operating and financial results for the quarter ended June 30, 2005.

On July 22, 2005 the Company announced that it had executed a farm-in agreement with EnCana Corporation ("EnCana") to participate in the drilling of an exploration natural gas well offshore Nova Scotia. Marauder will earn a 20% working interest in the well after drilling has been completed. To date, the Company has advanced $14 million pursuant to this agreement.

Marauder remains in a very strong reserves position with a present value of probable and possible reserves of $467 million before tax, on a 10% discounted basis, using escalated prices as per the reserve report prepared by Martin & Brusset Associates.

Marauder continues to own a 50% working interest in 18,414 acres which includes shallow rights at Panuke and Cohasset and all rights in the Balmoral block under Nova Scotia Production Licenses PL-2901 and PL-2902. In addition, the Company currently holds a 0.25% royalty interest in 110,000 acres covering two offshore exploration licenses.

Effective August 24, 2005, John Milford has replaced Gerry O'Reilly as Vice President of Exploration. Mr. Milford has 23 years of experience in the oil and gas industry, exploring on Canada's east coast, as well as in Alberta, Manitoba and Saskatchewan. Mr. Milford has a Bachelor of Science and a Masters of Science degree in Geology.

Ali Bhojani has resigned as a director of Marauder. William H. Smith, Q.C., a senior partner of McCarthy Tetrault LLP, has joined the Company's Board of Directors.

The Company would like to acknowledge the contributions made by Gerry O'Reilly and Ali Bhojani and is pleased to welcome John Milford and William Smith.



MARAUDER RESOURCES EAST COAST INC.

Unaudited Interim Consolidated Balance Sheets
June 30, 2005 and December 31, 2004

------------------------------------------------------------------------
2005 2004
------------------------------------------------------------------------

Assets

Current assets:
Cash and cash equivalents $ 14,765,614 $ 14,938,538
Accounts receivable 47,329 102,598
Prepaid expenses 17,441 33,807
------------------------------------------------------------------------
14,830,384 15,074,943

Property and equipment 23,850,984 23,770,944

------------------------------------------------------------------------
$ 38,681,368 $ 38,845,887
------------------------------------------------------------------------
------------------------------------------------------------------------

Liabilities and Shareholders' Equity

Current liabilities:
Accounts payable and accrued liabilities $ 24,666 $ 199,089

Shareholders' equity:
Share capital 43,893,177 43,592,272
Contributed surplus 3,121,925 3,218,193
Deficit (8,358,400) (8,163,667)
------------------------------------------------------------------------
38,656,702 38,646,798
Future operations
Commitment
Subsequent event
------------------------------------------------------------------------
$ 38,681,368 $ 38,845,887
------------------------------------------------------------------------
------------------------------------------------------------------------


MARAUDER RESOURCES EAST COAST INC.

Unaudited Interim Consolidated Statements of Operations and Deficit

Three months ended Six months ended
June 30, June 30,
2005 2004 2005 2004
------------------------------------------------------------------------
Revenue:
Interest Income $ 74,347 $ - $ 148,670 $ -

Expenses:
General and
administration 211,295 173,136 343,403 452,722

------------------------------------------------

Loss from continuing
operations 136,948 173,136 194,733 452,722

Discontinued operations:
Loss from discontinued
operations - 78,779 - 782,780

------------------------------------------------

Net loss 136,948 251,915 194,733 1,235,502

Deficit, beginning of
period as previously
stated 8,221,452 4,278,129 8,163,667 3,294,542
Change in accounting
policy - 16,756 - 16,756
------------------------------------------------
Deficit, beginning of
period as restated 8,221,452 4,294,885 8,163,667 3,311,298
------------------------------------------------

Deficit, end of period $8,358,400 $4,546,800 $8,358,400 $4,546,800
------------------------------------------------------------------------

Net loss per share,
continuing operations
Basic $ 0.00 $ 0.01 $ 0.00 $ 0.03
Diluted $ 0.00 $ 0.01 $ 0.00 $ 0.03
Net loss per share
Basic $ 0.00 $ 0.01 $ 0.00 $ 0.07
Diluted $ 0.00 $ 0.01 $ 0.00 $ 0.07
------------------------------------------------------------------------


MARAUDER RESOURCES EAST COAST INC.

Unaudited Interim Consolidated Statements of Cash Flows

------------------------------------------------------------------------
Three months ended Six months ended
June 30, June 30,
2005 2004 2005 2004
------------------------------------------------------------------------
Cash provided by
(used in):
Operations
Loss from continuing
operations $ (136,948) $ (173,136) $ (194,733) $ (452,722)
Change in non-cash
working capital of
continuing operations (222,670) - (102,788) -
------------------------------------------------
(359,618) (173,136) (297,521) (452,722)

Change in non-cash
working capital of
discontinued operations - 288,537 - 382,352
Gain (loss) from
discontinued operations - (70,643) - 173,925
------------------------------------------------
(359,618) 44,758 (297,521) 103,555

Financing
Issuance of common shares 90,000 180,248 217,500 423,836
Share issue costs (5,800) (81,645) (12,863) (97,018)
------------------------------------------------
84,200 98,603 204,637 326,817

Investing
Additions to property,
plant and equipment (33,023) (299,295) (80,040) (460,825)
Business Acquisition - - - (629,774)
Proceeds on sale of
property (discontinued
operations) - - - 30,000
------------------------------------------------
(33,023) (299,295) (80,040) (1,060,599)

Change in cash and
cash equivalents (308,440) (155,934) (172,924) (630,227)

Cash and cash
equivalents, beginning
of period 15,074,055 455,738 14,938,538 930,031
------------------------------------------------------------------------


Cash and cash
equivalents, end of
period $14,765,614 $ 299,804 $14,765,614 $ 299,804
------------------------------------------------------------------------


Interest Income
received $ 74,347 $ - $ 148,670 $ -
------------------------------------------------------------------------
------------------------------------------------------------------------


This news release may contain forward-looking information. Actual future results may differ materially from those contemplated.


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Marauder Resources East Coast Inc.
    Robert V. Shields
    President
    (403) 262-3907
    Email: rvs@maraudernrg.ca
    or
    Marauder Resources East Coast Inc.
    720, 440 - 2nd Avenue S.W.
    Calgary, Alberta T2P 5E9
    (403) 262-3907